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022 _a0002-8282
100 _aAgte, Patrick
_9123495
245 0 _aInvesting in the Next Generation: The Long-Run Impacts of a Liquidity Shock
260 _bAmerican Economic Review
260 _c2024
300 _a2792-2824
520 _aPoor entrepreneurs must frequently choose between business investment and children's education. To examine this trade-off, we exploit experimental variation in short-run microenterprise growth among a sample of Indian households and track schooling and business out-comes over eleven years. Treated households, who experience higher initial microenterprise growth, are on average one-third more likely to send children to college. However, educational investment and schooling gains are concentrated among literate-parent households, whose enterprises eventually stagnate. In contrast, illiterate-parent households experience long-run business gains but declines in children's education. Our findings suggest that microenterprise growth has the potential to reduce relative intergenerational educational mobility.
650 _a Child Care
_913939
650 _a Children
_9127
650 _a Family Planning
_9181
650 _a Firm Performance
_9122464
650 _a Liquidity Shock
_9123496
650 _aAnalysis of Education
_9122120
700 _a Bernhardt, Arielle
_9123497
700 _a Field, Erica
_9123498
700 _a Pande, Rohini
_9120618
700 _a Rigol, Natalia
_9123499
856 _uhttps://www.aeaweb.org/articles?id=10.1257/aer.20220296
999 _c134523
_d134523